When I do intraday, I realize that most of the time my target is hit but after hitting my stop loss. How to keep a right stop loss? My stop loss is usually small because of my fear of losing too much!
If you knew what is the ârightâ stop loss, youâd be a genius my friend.
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I had the exact same problem. I would initiate a good trade, but get stopped out for using a very tight stoploss. I did that because of fear of losing, but ironically ended up making a bunch of losing trades. Hereâs how I solved it: The way people have a system (e.g. a combination of indicators) to identify a good entry point, I also have a system to identify when the trade is going against me. When that happens, I manually exit the trade. I use the maximum allowed stoploss before the margins keep increasing (itâs usually about 1% for stock futures, I use bracket orders). I have never had it triggered so far. So, the key is to have a reliable computer and an internet connection and to watch the trade all the time. For me it lasts only a few minutes, so it isnât a problem. I guess since you are also a daytrader, you will have to watch your trades continuously too without solely relying on stoplosses to get out of the losing trades. I use stoploss only on positional trades since I canât keep watching the market all the time.
Hope this helps.
An additional tip: Just watch the candlesticks and indicators. If you are also looking at LTP, there is a high chance of panicking and exiting a good trade just because price went against you for just a few seconds.
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Hello Trader,
In the past, the standard STOP LOSS triggers were usually the following:
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The Previous days highs and lows.
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Todays opening range high and low.
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Pivot Levels.
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Daily Resistance and Support Levels.
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Fibonacci Retracement levels.
However, These days when you daytrade you should take into consideration that you are playing against automated computers and algos, also against people who can afford to loose a billion today and double it tomorrow.
The last string now available to daytraders is to trade with the news catalyst and with strong volume based trends.
The problem you face with recurring stop-loss triggers getting hit before trend reversal has no solution, unless you are willing to take a chance to loose it all and trade without a stop loss.
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What is Right Stop Loss Level?
A right stop loss Exit is that where the probability of loss is minimal if triggered . A stop loss can help safeguard you against crippling losses.
Stop Loss levels are areas where huge buying starts.
They are based on key reversal levels.
When ordinary traders are convinced that the markets will fall, the intelligent investor enters and starts buying.
Ordinary investors feel that when stop loss is triggered it is just their bad luck. But it is important to understand that they face losses because they are not following the right levels. It is simply a lack of awareness. And trust Dynamic Levels to give you the right levels.
Why is Right Stop Loss Level Important?
The right stop loss has to be set in order to limit losses.
If you donât keep stop loss then losses can be severe.
They are based on key reversal levels.
Research has shown that right stop loss exit level has filtered out local and international news for which market falls temporarily but later recover
How to use Right Stop Loss Level?
Ordinary investors feel that when stop loss is triggered it is just their bad luck. But it is important to understand that they face losses because they are not following the right levels.Â
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Go with fixed stoploss like 0.5% or 1% the more focus you give to set the right stoploss the more it hurts when stop get triggered ⌠so don,t focus on stoploss focus on your profit bookingâŚand old typical example
âcut lose ride profitâ
Fib levels are great.
Hello Dorkstar,
You are right with your comment, however it is just an understanding about ârightâ stop loss. Here there is no point in speaking about genius intellect.
My mother named me Dorkstar. Iâm already a star; par excellence
Why not to place an order at the level of stoploss? Just asking out of curiosity⌠in my case as well, it has happened. But there are chances of loosing trades.